Inside: What are the pros and Cons of 1099 employment? Everything you need to know about working this way & hiring out contractors.
Are you considering a career as a freelancer? If so, that’s amazing! It can truly be such an awesome career to have and a great way to kick off a bigger online work experience. When I was first starting out my original blog, I also did freelance creative work on top on building my own brand which helped me in some really great ways. It allowed me to:
- Earn income quickly
- Build links to my new site as I was being credited for work online
- Network with some of the bigger sites in my niche
- Gained valuable experience learning what readers in my niche like to see and how to best present it
- Built confidence in me & grew my audience organically as more people heard about my creative work
Understanding the pros and cons of 1099 employment is essential when you are trying to make such a huge decision.
As an independent contractor (which is the fancy term for freelancer), I want to drive home how important it is to understand your rights, both legally and financially, in order to ensure you are making informed decisions about your future. Sounds kind of intense, but it’s just a little studying to make sure you get it correct.
From increased pay potential to managing taxes on your own, there are many factors at play when it comes to deciding whether or not 1099 employment is right for you. So I am going to go over all the advantages and disadvantages of being a 1099 employee to help you ultimately find success as an independent contractor.
What Is 1099 Employment?
I thought this was kind of an important start. So… what exactly is 1099 employment? Let me get a little theatrical for a moment.
Gone are the days when traditional employment was the only path towards career success. With 1099 entering the chat, you have the opportunity to take on project-based work and choose your own hours. But what exactly is 1099 employment, and how does it differ from the conventional 9-to-5 grind?
This type of work is essentially defined by the fact that you are an independent contractor, rather than an employee of a company. This means that you are in charge of your own taxes, benefits, and work environment.
It may seem intimidating at first, but those who embrace 1099 payroll find that it gives them the freedom to be their own boss and create their own destiny, take it from me. I have done plenty of freelance work over the years.
Whether you’re a recent grad looking for flexibility, a new blogger just starting out, or an experienced professional looking for a change. 1099 employment may just be the path for you.
I know that sounds pretty great, and it totally is. But I also wanted to touch upon the harder aspects of 1099 life, along with the good ones. But don’t worry, I’ll start with the good.
The Pros & Cons of 1099 Employment: Pros
When it comes to 1099 employment, the pros far outweigh the cons.
First and foremost, you have the freedom to work when and where you want.
No more being stuck in a mundane office from 9-5, that is out the window! Instead, you could be working out of international coffee shops, taking a movie break in between your gigs, and so much more. The rest of the pros are below.
1. Flexible Scheduling and Variety of Projects
As human beings in this fast paced world, we crave flexibility and variety in our work, right? I can’t be alone on this. That’s exactly what being a freelancer with flexible scheduling and diverse projects offers. Having the freedom to choose how, where, and when we work can massively boost our productivity and creativity.
Plus, I have found that being able to work on projects that challenge me in new ways prevents monotony and keeps me more engaged and stimulated. This kind of ‘workplace’ fosters a culture of growth and empowers you to take ownership of your work, which ultimately results in greater job satisfaction and success.
So why not say yes to flexible scheduling and a variety of projects, and unlock your full potential as passionate professionals? There are even some online jobs that you can create to work towards a more passive income. If you’re interested, then you should check out this tutorial on how to make money on kindle without writing!
2. Potential to Earn Higher Income
When it comes to earning potential, the sky’s the limit! I know this sounds too good to be true, but it isn’t. You really get to just choose your rate. There are endless opportunities out there waiting for you to seize them. Don’t settle for a job that doesn’t fulfill you or, worse yet, doesn’t pay you what you deserve.
With hard work and determination, you can unlock your true earning potential and achieve financial freedom. Whether you’re interested in entrepreneurship, investing, or so much more…there is a wide pool to choose from. So don’t let anyone tell you that you can’t make more money… because you absolutely can.
It all starts with believing in yourself and taking action towards your goals. So go ahead, dream big, and work hard… your earning potential is waiting for you!
I may seem a little enthusiastic, but that is because I am. Even with the cons, this path is worth it. If you are creating your own blogging business, you need to check out this list of tips to help your business grow.
Pros and Cons of 1099 Employment – 3. Tax Benefits
Tax benefits can provide a welcome relief to many individuals and businesses alike, but especially to freelancers. Whether it’s through deductions or credits, these benefits can greatly reduce the amount of taxes owed, which is more money in your pocket! Since you are basically your own business owner, you actually get to add in deductions.
So at the end of the year, you end up paying less than you thought!
The Pros and Cons of 1099 Employment: Cons
As a freelancer, you’re living your best life, making your own schedule and doing what you love.
Sounds like the perfect job, right? Not so fast.
As wonderful as 1099 employment may seem, there are a bunch of cons that come along with it. That’s not to say that it’s not worth it, but I still think it’s important to look at the whole picture.
1. No Guaranteed Paycheck
Picture this: You wake up every morning, ready to face the day and conquer your dreams. You log into your work computer, open up your emails and realize… there’s no guaranteed paycheck coming your way. Cue the panic!
Now, before you start hyperventilating into a paper bag, let me tell you something. Yes, not having a guaranteed paycheck can be scary, but it can also be one of the most liberating experiences you’ll ever have. Think about it. When you’re not tethered to a paycheck, you’re free to explore all sorts of opportunities that you might have never considered before.
You’re able to take risks, learn new skills and grow in ways you never thought possible. So, who needs a guaranteed paycheck anyway? It’s overrated. Let’s embrace the unknown and see where it takes us!
All jokes aside, this can be a serious downside to 1099 employment. But don’t let it scare you. With the internet, there are millions of jobs online waiting for you.
2. Lack of Job Security & Fewer Benefits
In today’s job market, it’s all too common to feel the weight of insecurity and instability. With limited benefits and a lack of job security, you are left feeling like you’re constantly on edge.
It’s easy to see why so many millennials and Gen Z’ers are hesitant to commit to a single job or company for an extended period of time. The reality is, gone are the days of “working your way up the ladder” and receiving a gold watch for your 30 years of loyal service.
Instead, I look around and see that we’re faced with a gig economy, where we’re expected to be constantly on the lookout for the next opportunity. It’s a tough pill to swallow, but it’s also an opportunity to take control of your own career and find creative ways to build a more secure future for yourselves.
So there are many pros and cons to 1099 employment, but it seems like there may be slightly more pros. Still, it’s up to you if this is a career path that you want to choose.
It can be exciting, liberating, and a great opportunity for you to be paid more, but at the same time it could also be stressful. So weigh these factors out and see where you land!
If you still haven’t been scared off, then you should check out this list of some of the best jobs from your phone that have the potential to be paying your rent.